Crypto exchanges and market adoptionPosted on: July 4, 2018, by : Dan Muresan
Crypto exchanges and the whole crypto market is still in the early stages and many people look at it with uncertainty. Because of a large number of reasons. That happens because of the exchange hackings that took place, the overall user experience with creating accounts, the wallets and security of your assets, the doubt, the uncertainty, etc. All of these is causing most people who heard of cryptocurrencies to stay away. To call bitcoin a bubble. Indeed, there has been a lot of suspicion regarding cryptocurrencies, a lot of good, but also bad things happened, and mass adoption is still far away. This makes us early adopters, which can’t be a bad thing. On the contrary, it’s an amazing thing.
Getting to understand cryptocurrency and how crypto exchanges work might be difficult for some people.
So, there is only a small amount of people in the world who even heard of cryptocurrencies, blockchain technology, crypto exchanges. And even a smaller percentage from those who heard of it, are investing in crypto. Increasing the adoption is hard, and it can’t be forced. It’s a slow and natural process because it’s just the beginning. And there are lots of reasons why a regular person is still distant in regards to investing in crypto. As I said, we are in the early stages and a lot of work needs to be done in order to be easy for anyone to get into crypto. Now you have to learn what to do and how to do it. I know, some of you might say it’s easy, I’m exaggerating. But go ahead and ask around about it.
Trading crypto, opening an account, and learning the right way to keep your assets safe, is a lengthy process.
Comparing it to opening a bank account, at Revolut for example, crypto exchanges can be confusing. You can open a Revolut account while staying in traffic and it takes only a few seconds. What I meant to say with this example is that people want simplicity. Another example, it’s very convenient to watch Netflix, because you have your favorite shows and you can watch anytime you want, anything you want. There is no hard decision making process for users and that wins the market adoption at the end of the day.
Now, if you are a new guy into this space and you want to trade crypto, nobody tells you specifically how to do it. Or what is the best way to do it, what crypto exchanges to use, how to actually buy, etc. It’s a lot of research you have to do and you have to be careful with all the security measures.
Crypto Exchanges assume you have trading knowledge and you understand how it’s done. But that’s not true.
You have to learn it the hard way, studying by yourself. It takes time and you have to be into it if you want to succeed. People like me, who are passionate, will spend a few hours reading all educational materials that are out there. And will learn the basics in a few hours. But if you are not a bit geeky, or into tech or passionate to discover new technologies, you probably won’t give yourself the time to read and understand.
There are few education resources regarding trading cryptocurrencies, less education regarding the safety measures you should take. The next natural step in increasing the crypto adoption is trying to educate people and making the user experience easier. Flawless.
Education from Crypto Exchanges
A cryptocurrency exchange is probably one of the first points of contact of a user with the crypto space. Education made by exchanges should be abundant and transparent. Education should start with tons of information and all trading risks implied for the user. Even if blockchain is an amazing technology, it’s at the beginning. That means no regulations. And that means be aware of scams. So everything from security, education and the whole process of improving UX/ UI for us should be a continuous work.
Security and simplicity should be the number one focus for every exchange.
We have a history of hackings that scared the media and caused a lot of doubt among many. New regulations are emerging this year across all globe, meaning that security is addressed and the focus shifts to protecting us, the investors. Know Your Customer (KYC) procedures are a must have between exchanges. All of these measures take time. It’s the beginning of something new. The egg just got cracked.
Q: What do you think are the next steps for increasing market adoption and making it easier for everyone to dig into crypto universe? You can leave a comment below.